Iran’s Thermal Power Plant Holding Company (TPPH) has announced that it will auction electricity from its power plants to cryptocurrency miners in the near future.
The power generation company announced in a blog post today that it has already installed the necessary equipment in three of its power plants located at Ramin, Neka, and Shahid Montazeri cities.
The move is coming after concerns were raised over the intensive power consumption of cryptocurrency mining on the nation’s electricity grid, which prompted power plant owners to propose distributing the “excess” electricity from their plants to miners.
Mohsen Tarztalab, CEO of TPPH, disclosed that the Energy Ministry’s laws and regulations grant it the right to allocate some capacity of its power plants for cryptocurrency mining operations.
Documents of the upcoming auction will be uploaded on the SetadIran.ir website for interested participants at the appropriate time, the announcement added.
Generating more revenue
According to Tarztalab, the Iranian power industry has been focused on generating more revenue for the nation’s economy. He noted that one way to generate income for the industry is to allocate more power to cryptocurrency miners, as the operation has proven to be highly lucrative.
“Unfortunately, constant price hikes and the obligation for supplying electricity with stable prices to subscribers have caused a large gap between revenues and expenditures in the country’s electricity industry, and we need new sources of income to fill this gap,” Tarztalab added.
Since mid-last year, Iran has been in support of crypto mining when it passed a regulation that allows crypto miners to mine cryptocurrency based on electricity prices.
Lucrative but expensive
Cryptocurrency mining is one of the most profitable ventures in the crypto industry. However, despite being lucrative for miners, crypto mining is accompanied by high electricity tariffs, which has prompted several nations to delve into the industry.
Meanwhile, Coinfomania reported that Ukraine planned on using its excess electricity to mine cryptocurrencies.
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